Malaysia's Petronas has signed a Production Sharing Contract (PSC) with TotalEnergies, Petronas Carigali, and Shell for Block 2K, an ultra-deepwater block off the coast of Sabah, Malaysia.
According to Petronas, Block SB 2K, with a depth of up to 3,000 meters, covers an area of 1,952 sq km and is located in the prolific north-west ultra-deepwater area within a proven hydrocarbon basin with promising hydrocarbon potential.
Under the PSC terms, TotalEnergies will be the operator with a 34.9 percent stake. Petronas Carigali will hold a 40 percent stake, and Shell the remaining 25.1 percent.
Petronas' Senior Vice President of Malaysia Petroleum Management (MPM), Mohamed Firouz Asnan, said: “The signing of the PSC for Block 2K completes the licensing of the five ultra-deepwater blocks off the coast of Sabah, along the newly identified Oligo-Miocene carbonate trend proven by Tepat-1 oil discovery in Block N in 2018. Block 2V was signed last year, followed by Blocks 2W and X early this year.”
“A total of four wells are expected to be drilled in these ultra-deepwater blocks in 2022 and 2023, to explore within this emerging hydrocarbon province,” he added.